Posted by: Armel | January 9, 2010

Twitter Profitable in 2009 ?

A random published article around the end of year 2009, claiming sources inside the company, put the company in the black for the year 2009. 

However,  it’s easy to put in doubt that notion, based on the fact that the only items taken into consideration were revenues from deals signed in the last quarter with Google and Bing. Although those revenues brought cash up to $25 millions, it’s worth noticing that since the company doesn’t release any long term revenues strategies, it could be challenging to know for sure how they intend to do it going forward. With many accounts and clients signing up everyday, some tend to forget the underlying costs twitter itself has to fork out to wireless companies (sms functionalities). Given the climate (stalling growth) in the telecoms industry in the US, it’s hard to imagine how twitter can obtain huge discounts for the services, because wireless providers themselves are counting on these types of content sharing apps to maintain revenues projections.

We’ll see what happens end 1st quarter ’10.


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